The federal government approved $60 billion in additional Medicaid funds for hospitals, doctors, nursing homes and other health care providers in the final months of 2025.[1] These finances come from programs managed by states, known as state directed payment programs.[1] The approved payments keep Medicaid rates comparable to the high prices of commercial insurers until 2028, when funds begin to be phased out under the Republican tax bill.[1] In September, the Centers for Medicare and Medicaid Services (CMS) estimated that these programs cost $124 billion in 2025 and $145 billion this year.[1] CMS previously approved state applications totaling $9 billion and $4 billion last year.[1] These additional payments are intended to help providers face anticipated budget cuts.[1]